Tagged: fitch

dv01, Fitch Launch RMBS Benchmarks

dv01 and Fitch have joined to launch two “non-agency RMBS benchmarks.” Residential mortgage-backed securities represent a pool of home loan mortgages secured by the property. dv01 is a capital markets Fintech that offers lending data on more than 230 million loans. dv01 was acquired by… Read More

Digital Banking Platform CaixaBank Given an ESG Entity Rating Score of 2 by Fitch Index

The Fitch index has reportedly given CaixaBank an ESG Entity Rating score of 2. This initiative in the sector is geared towards providing information and advisory services to foster the implementation of sustainability in companies and “support them in processes such as decarbonization and environmental… Read More

Fitch Downgrades and Withdraws Signature Bank’s Ratings

Perhaps a bit late, Fitch Ratings has downgraded and withdrawn Signature Bank’s (SBNY) ratings. Signature Bank was shuttered this past weekend by the New York Department of Financial Services. Signature, active in the crypto sector, suffered a similar shortcoming to Silicon Valley Bank as it… Read More

Fitch Takes Neutral Stance on Fintech in 2023

Fitch Ratings has posted a comment on the Fintech market, taking a neutral stance on innovative financial services firms for 2023. Fitch predicted continued revenue growth for North American and European Fintechs in 2023, but at a slower pace than in recent years. As one… Read More

Fitch: US Regulators Block Fintechs Pursuing Bank Charters

Fitch Ratings says Fintechs and other non-bank financial institutions (NBFIs) are being blocked from receiving bank charters by public officials, adding that these digital firms are at a competitive disadvantage because of this reality. Fitch notes that no industrial loan company (ILC) charters have been… Read More

Online Lending Data Provider dv01 Purchased by Fitch

dv01, a top provider of online lending data, has been acquired by Fitch. According to a statement disributed by Fitch, the company has agreed to purchase a majority stake in dv01. Details on the acquisition were not provided. Fitch is, of course, a top ratings… Read More

Fitch Positive on Block, Affirms BB Rating

Fitch Ratings has issued a statement affirming the Long-Term Issuer Default Rating (IDR) of Block, Inc., formerly Square (NYSE:SQ), at ‘BB’. Fitch said its outlook of Block remains “Positive” adding that its debt could decline in the coming years as EBITDA scales. Fitch affirmed the… Read More

BNPL Facing Increasing Challenges: Fitch

Ratings agency Fitch is out with commentary on the buy now – pay later (BNPL) sector that is cautious on the new form of credit. According to Fitch: “BNPL is likely to face increased challenges from growing competition, higher funding costs and credit deterioration, as… Read More

BNPL: Fitch Worries About Klarna as CEO Announces Layoffs

Klarna, a global online lender in the hot buy now – pay later sector (BNPL) that only recently announced topping 150 million consumers, has issued a stark warning about the current economic environment. Sebastian Siemiatkowski, Klarna’s CEO and co-founder, has shared “bad news” with its… Read More

Stablecoin Report: Greater Risks Posed by Stablecoins Using Only Fractional Reserves or Higher-Risk Asset Allocations

The dramatic growth of stablecoin issuance may eventually have implications for the overall functioning of short-term credit markets, according to Fitch Ratings. The statement by Fitch follows comments late last month by Boston Federal Reserve President Eric Rosengren stating that Tether is a looming risk for… Read More

Fitch Distributes Warning on Marketplace Loans Due to “Coronavirus Pressure”

Fitch Ratings is out with a note on the impact of COVID-19 and US marketplace loan portfolios. According to Fitch, the Coronavirus and affiliated rise in unemployment will lead to “significant performance degradation in U.S. Marketplace Loan (MPL) portfolios.” Even more grim is that Fitch… Read More

Marketplace Lending: Fitch Upgrades Prosper Notes

Fitch Ratings has upgraded the rates on several notes that are backed by loans from marketplace lending platform Prosper. According to Fitch, the ratings on the Class B and Class C Series 2018-1 (PMIT 2018-1) notes have improved due to the “growth in hard credit… Read More

Fitch Report: Declining Credit Enhancement in US MPL ABS is Unwarranted

Fitch is out with a report on marketplace lending (MPL) asset-backed securities (ABS) stating declining credit enhancement is unwarranted. Fitch states that credit enhancement (CE) levels of ‘Asf’ category rated US MPL ABS have meaningfully declined since 2017, while asset quality remained relatively steady. As… Read More

Standard & Poor’s, Moody’s and Fitch Warn They May Downgrade Financial Institutions Exposed to Bitcoin Futures

The three biggest agencies relied upon to assess the credit-worthiness of banks and investment products -Standard & Poor’s, Moody’s and Fitch- have indicated they may downgrade scores of institutions that clear Bitcoin futures contracts or have exposure to the clearing of them, Risk.net reports. Last… Read More

Fitch Upgrades Select Ratings, Outlook on Prosper Marketplace ABS

Fitch has moved to upgrade ratings that impact assets originated on the Prosper marketplace lending platform. According to the rating agency, Fitch taken the following rating actions on two Citi Held for Asset Issuance trusts, which are backed by marketplace loans: CIiti Held for Asset Issuance… Read More

Sold. Earnest Acquired by Navient for $155 Million

Earnest, an online lender in the student loan space, has been acquired for $155 million by Navient (NAVI) – the largest student loan servicer in the US. Since 2015, Earnest has refinanced approximately $2 billion in loans saving an estimated $500 million for thousands of… Read More

Rating Action: Fitch Upgrades Loans Originated by Prosper

Fitch Ratings has taken the following rating actions on Citi Held for Asset Issuance 2016-PM1 (CHAI 2016-PM1), which is backed by marketplace loans originated via the Prosper platform: Class A upgraded to ‘Asf’ from ‘A-sf’; Outlook Stable; Class B upgraded to ‘BBBsf’ from ‘BBB-sf’; Outlook… Read More

Fitch Expects to Rate SoFi Inaugural Residential Mortgage Backed Securities

Fitch shared last week its intent to rate SoFi’s RMBS transaction that included 270 loans with a total balance of approximately $168.79 million. The group of loans consists of prime fixed-rate mortgages originated on the SoFi online lending platform. The presale report was pretty positive… Read More

Fitch: OCC Fintech Charter Could Harm Agility & Cost of Innovative Financial Firms

Fitch Ratings is out with a note on the recently announced Comptroller of the Currency (OCC) Fintech charter. The OCC has crafted a document to allow digital banks to become regulated entities by receiving federal bank charters. Fitch is of the opinion the Fintech charter… Read More

Fitch: Goldman Sachs Blends Banking & Fintech with Launch of Marcus

Fitch Ratings is out with a note on Goldman Sachs’ foray into the online lending market. Fitch says that Marcus, Goldman’s recently launched lending platform, seeks to combine the best of both Fintech and the stability of being a more traditional bank. Marcus is differentiated from… Read More

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